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If they booked 0 in revenue but helped other agencies save money by lower procurement cost or generate revenue, is that a problem?
by pcurve 10y ago
If they booked 0 in revenue but helped other agencies save money by lower procurement cost or generate revenue, is that a problem?
- jldugger 10y agoI assume their financial model is to charge agencies for their services. Often times by competing with private vendors. If such an agency is 10 percent over budget, it means they're undercharging agencies by that much. By failing to charge their true cost, they're potentially undercutting vendors who would have cost the taxpayers less overall. It sounds like upper management doesn't want to do the hard work of accurately pricing their services, or maybe is intentionally undercharging to ensure they get to provide the service. In some ways, they're definitely in a bind -- if they undercharge, they're crowding out private competition, and if they overcharge, they look like greedy bureaucrats.